Semiconductor Sales Achieve Double-Digit Growth for Ninth Consecutive Month in August: BofA

Global semiconductor sales continued their remarkable growth in August 2024, marking the ninth consecutive month of double-digit year-over-year (YoY) growth, as reported by Bank of America this week.

According to the bank, semiconductor sales surged by 28% YoY in August, further enhanced by a 15% month-over-month (MoM) increase, highlighting sustained demand within the industry.

Bank of America pointed out that core semiconductor sales, excluding memory segments, experienced steady growth as well, rising by 8.4% YoY. This marks the thirteenth straight month of positive YoY growth in this category.

On a monthly basis, core semiconductor sales increased by 3.9% MoM, surpassing seasonal trends by nine basis points.

Memory sales demonstrated the most significant growth, showcasing a remarkable 52% MoM increase, primarily driven by substantial rises in DRAM (+66.2% MoM) and NAND (+38.3% MoM). The heightened demand for memory was a pivotal factor contributing to the strong semiconductor performance in August.

Regionally, the Americas led the growth, with semiconductor sales climbing by 26.5% MoM, followed by China with an 18.5% MoM increase and Europe with a 10.5% MoM rise. Japan and the Asia-Pacific region experienced positive growth as well, although at a more modest rate of 2.7% and 4.9%, respectively.

On a year-to-date basis, total semiconductor sales have risen by 19.4%, with core semiconductors increasing by 9.3%, driven primarily by microprocessor units (MPUs) which saw a 24.6% rise. Bank of America anticipates that the broader recovery in the industry will extend into 2025, fueled by long-term growth trends in artificial intelligence (AI), semiconductor complexity, and the electrification of both automotive and industrial sectors.

Despite uncertainties surrounding demand recovery in automotive, industrial, and consumer sectors, Bank of America remains optimistic, affirming that the long-term outlook for the semiconductor industry is robust.